An ellipse with equation
\[\frac{x^2}{a^2} + \frac{y^2}{b^2} = 1\]contains the circles $(x - 1)^2 + y^2 = 1$ and $(x + 1)^2  +y^2 = 1.$  Then the smallest possible area of the ellipse can be expressed in the form $k \pi.$  Find $k.$
We can assume that the ellipse is tangent to the circle $(x - 1)^2 + y^2 = 1.$  From this equation, $y^2 = 1 - (x - 1)^2.$  Substituting into the equation of the ellipse, we get
\[\frac{x^2}{a^2} + \frac{1 - (x - 1)^2}{b^2} = 1.\]This simplifies to
\[(a^2 - b^2) x^2 - 2a^2 x + a^2 b^2 = 0.\]By symmetry, the $x$-coordinates of both tangent points will be equal, so the discriminant of this quadratic will be 0:
\[(2a^2)^2 - 4(a^2 - b^2)(a^2 b^2) = 0.\]This simplifies to $a^4 b^2 = a^4 + a^2 b^4.$  We can divide both sides by $a^2$ to get
\[a^2 b^2 = a^2 + b^4.\]Then
\[a^2 = \frac{b^4}{b^2 - 1}.\]The area of the ellipse is $\pi ab.$  Minimizing this is equivalent to minimizing $ab,$ which in turn is equivalent to minimizing
\[a^2 b^2 = \frac{b^6}{b^2 - 1}.\]Let $t = b^2,$ so
\[\frac{b^6}{b^2 - 1} = \frac{t^3}{t - 1}.\]Then let $u = t - 1.$  Then $t = u + 1,$ so
\[\frac{t^3}{t - 1} = \frac{(u + 1)^3}{u} = u^2 + 3u + 3 + \frac{1}{u}.\]By AM-GM,
\begin{align*}
u^2 + 3u + \frac{1}{u} &= u^2 + \frac{u}{2} + \frac{u}{2} + \frac{u}{2} + \frac{u}{2} + \frac{u}{2} + \frac{u}{2} + \frac{1}{8u} + \frac{1}{8u} + \frac{1}{8u} + \frac{1}{8u} + \frac{1}{8u} + \frac{1}{8u} + \frac{1}{8u} + \frac{1}{8u} \\
&\ge 15 \sqrt{u^2 \cdot \frac{u^6}{2^6} \cdot \frac{1}{8^8 u^8}} = \frac{15}{4}.
\end{align*}Equality occurs when $u = \frac{1}{2}.$  For this value of $u,$ $t = \frac{3}{2},$ $b = \sqrt{\frac{3}{2}} = \frac{\sqrt{6}}{2},$ and $a = \frac{3 \sqrt{2}}{2}.$  Hence,
\[k = ab = \boxed{\frac{3 \sqrt{3}}{2}}.\]